Dentsu Aegis Network Buys Majority Stake in Columbia, Md-based Merkle
Dentsu Aegis Network, headquartered in London, and Merkle Group Inc. (Merkle), headquartered in Columbia, Md, announced the signing of an agreement for Dentsu to acquire a majority stake in Merkle, “a global data-driven, technology-enabled performance marketing agency and the largest independent agency in the US for CRM, digital, and search. This is a significant strategic combination that will accelerate Merkle’s ability to grow as a global agency and provide exciting new opportunities for the customers and employees” of both organizations.
As part of the transaction, Dentsu Aegis is acquiring a majority stake in Merkle, and Technology Crossover Ventures and certain other shareholders are selling shares. Merkle’s CEO David Williams, the management team and employees are retaining a significant minority interest. The transaction, which is subject to customary closing conditions, is expected to complete before the end of September 2016.
According to a release, “US-based Merkle has grown rapidly from its heritage in data and technology, combining a deep understanding of first-party data, sophisticated analytical capabilities, and comprehensive digital media capabilities. As a true pioneer of “people-based marketing,” Merkle is one of the few providers who can deliver data-driven, technology-enabled marketing solutions to large corporations, helping them improve customer engagement, advance competitive positions and maximise return on marketing. Merkle offers a wide range of services, including data and analytics, marketing technology, digital agency services and consulting.
“Merkle generated $436m of revenues in 2015, an increase of 14 per cent on 2014. The company has over 650 world-class clients, access to over 150 marketing databases, and manages over 3.7bn first-party customer records. Merkle employs more than 3,400 colleagues working in 21 offices, with 16 in the US and the remainder in London, Bristol, Barcelona, Shanghai, and Nanjing.
Merkle is a highly complementary fit to Dentsu Aegis’s capability in media, performance, content and brand commerce. It will become one of the Network’s leading agency brands, and the combination is expected to deliver significant revenue growth opportunities, through collaboration providing new capabilities and benefits to both of our clients.
“Dentsu Aegis’s strategy is to become a 100 per cent digital economy business by 2020 and the addition of Merkle will accelerate this ambition as well as significantly enhance the Network’s global operations.”
